2005 Interim Results Announcement2005 Interim Results Announcement

Sinotrans LimitedAugust 26, 2005

Sinotrans LimitedAugust 26, 2005

2

Forward-Looking Statement DisclaimerForward-Looking Statement Disclaimer

This Presentation and subsequent discussions may contain forward-looking

statements that involve risks and uncertainties. These statements are generally

indicated by the use of forward-looking terminology such as believe, expect,

anticipate, estimate, plan, project, target, may, will or may be expressed to be

results of actions that may or are expected to occur in the future. You should not

place undue reliance on these forward-looking statements, which reflect our

belief only as of the date of this presentation. These forward-looking statements

are based on our own information and on information from other sources we

believe to be reliable. Our actual results may be materially less favourable than

those expressed or implied by these forward-looking statements which could

depress the market price of our shares.

3

Table of ContentsTable of Contents

1. 2005 Interim Highlights

2. Outlook and Strategic Focus

3. Conclusion

3 – 14

15 – 16

17 –18

4

1.1. 2005 Interim Highlights2005 Interim Highlights

5

Interim Summary Highlights Interim Summary Highlights

Steady IH revenue growth of 33.7% and Profit attributable to equity holders of the

Company growth of 32.5%

Freight forwarding remained as the core business of the Group

Freight forwarding, storage and terminal service and the marine transport businesses continued

to bring significant growth

The increase in the price of international marine transportation stimulated our revenue growth

Continuous efforts in restructuring business resources and developing new products

Rapid development of NVOOC business

Better customer structure

Development of extended value-added services

Improving marine transportation business

Better management and operational efficiency and cost control

6

9,754.4

02000.0

4000.0

6000.0

8000.0

10000.0

12000.0

14000.0

1H 2004

1H 2005

Strong Financial Performance Strong Financial Performance

EPS: RMB0.12

Profit Attributable to Equity Holders of the Company

(RMB mm)

(RMB mm)

(RMB mm)

Effective enhancing operational efficiency resulted in stable growth in financial performance

Stronger growth in our 2005 interim financial performance

0

100.0

200.0

300.0

400.0

500.0

600.0

1H 2004 1H 2005

376.3

0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1H 2004 1H 2005

Dividend: RMB 0.038 per share

13,074.0

654.3

498.7

Turnover from Continuing OperationsOperating Profit from Continuing

Operations

533.2

700.0

7

0

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

1H 2004 1H 2005

(RMB mm) 1H 2004 1H 2005

Growing Turnover of Continuing OperationsGrowing Turnover of Continuing Operations

Key drivers of revenue growth

Continued momentum in freight forwarding and marine transportation services; strong growth in storage and terminal services

Adopted aggressive marketing strategy and enhancement in operational efficiency

2005 Interim Turnover Contribution

9,537.2

269.6

1,083.4

1,878.3

434.2

152.1

Turnover Trend

34.0%

(RMB mm)

Revenue Growth

Freight Forwarding

Shipping Agency

Express Services

Marine Transportation

Storage and Terminal Services

Other

Operating Turnover by Segment(RMB mm)

Freight Forwarding Express ServicesShipping Agency Marine Transportation

StorageOther

36.0%

32.3%

16.4%

33.2%

42.5%

1H 04–1H 05growth

01,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

9,000.0

1H 2004 1H 2005

9,754.4

14,000.0

10,000.0

7,158.5231.6

818.9

1,380.9

304.6

66.6

13,074.0

26.8%

7158.5

231.6818.9

1380.9304.6

66.611,000.0

12,000.0

13,000.0

14,000.0

9537.2

269.6

1083.4

1878.3

434.2

152.1

128%

8

(RMB mm)

Improving Operating Profit Performance of Improving Operating Profit Performance of Continuing OperationsContinuing Operations

Growth in operating profit from freight forwarding, marine transportation business and storage and terminal business

Operating Profit Contribution

204.9

124.6

172.8

124.6

97.8

4.0

Operating Profit Trend

Note: After unallocated costs

Note: Before unallocated costs

Freight Forwarding

Shipping Agency

Express Services

Marine Transportation

Storage and Terminal Services

Other

(RMB mm)

Operating Profit by Segment

Note: Before unallocated costs

Freight Forwarding Express ServicesShipping Agency Marine Transportation

StorageOther

64.6%

42.4%

22.7%

1H 04–1H 05 growth

0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1H 2004 1H 2005

Revenue Growth

533.2

0

100.0

200.0

300.0

400.0

500.0

600.0

1H 2004 1H 2005

(RMB mm) 1H 2004 1H 2005

654.3

155.3

110.9

166.6

87.5

59.4

(0.7)

NA

155.3

110.9

166.6

87.5

59.4

31.9%

12.4%

204.9

124.6

172.8

124.6

97.8

4.0

3.7%

9

Total Operating Profit: RMB728.7mn Total Revenue: RMB13.074bn

Key Business Lines Key Business Lines

71.4%

8.1%

14.1%1.1%3.3%

2.0%

Operating Profit Contribution (2)Turnover Contribution (1)

Integrated Logistics

Sinotrans Limited

Support Services

Storage & Terminal Services

TruckingMarine

Transportation

Core Services

Shipping Agency

Freight Forwarding

Freight Forwarding Express Services Storage & Terminal ServicesShipping Agency Marine Transportation Other

(2) Percentage contribution is before unallocated costs and exclude the negative operating profit from others

(1) Percentage contribution is before inter-segment eliminations

Express Services

17.1%

23.7%17.1%

28.2%13.4%

0.6%

10

5,502.8

01,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

1H 2003 1H 2004 1H 2005

77.2

0

50.0

100.0

1H 2003 1H 2004 1H 2005

1.32

0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

1H 2003 1H 2004 1H 2005

(RMB mm)

(RMB mm)

Freight Forwarding Operating PerformanceFreight Forwarding Operating Performance

(million TEUS) (Kilogram in million)

Number of TEU Growth

30.1%

Amount of cargo

Note: Before elimination adjustments

A relatively fast business

development pace with better

customer structure

Operating Profit and Growth

Note: Before unallocated costs

Cargo Volume Growth Turnover and Growth

Growth

155.3

0

40.0

80.0

120.0

160.0

200.0

1H 2003 1H 2004 1H 2005

1.63

23.5%

118.4

53.4%

150.0

7,158.5

7,000.0

33.2%

179.3

13.4%

8,000.0

9,000.010,000.0

9,537.2

154.4

30.4%

2.19

34.4%

204.9

31.9%

11

818.9

0

200.0

400.0

600.0

800.0

1H 2004 1H 20050

1.0

2.0

3.0

4.0

5.0

6.0

1H 2004 1H 2005

Note: Before elimination adjustments

Express Services – the Performance of Continuing OperationsExpress Services – the Performance of Continuing Operations

Growth

21.0% 32.3%

Enhanced marketing efforts resulted in rapid business growth

Turnover and Growth(RMB mm)

Packages Growth(Packages in millions)

Growth

Operating Profit and Growth

Note: Before unallocated costs

(RMB mm)

0

50.0

100.0

150.0

200.0

250.0

1H 2004 1H 2005

4.43

7.0 1200.0

1083.4

172.8

3.7%

5.36

1000.0

166.6

12

1H 2003 1H 2004 1H 2005

Shipping Agency Operating PerformanceShipping Agency Operating Performance

96.2

0

20.0

40.0

60.0

80.0

100.0

120.0

17.8%

35.8%

Note: Before unallocated costs

Note: Before elimination adjustments

Turnover and volume growth due to enhanced customer service and marketing efforts

Net Registered Vessel Tonnage(NRT in millions)

Growth

Turnover and Growth

(RMB mm)

Growth

Operating Profit and Growth(RMB mm)

4.04%

16.4%

231.6222.6

0

50.0

100.0

150.0

200.0

250.0

1H 2003 1H 2004 1H 2005

124.3

0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

1H 2003 1H 2004 1H 2005

130.6

140.0

153.8269.6

110.9

Growth

10.8%

130.6

160.0

124.6

12.4%

13

Storage and Terminal Services Storage and Terminal Services Operating PerformanceOperating Performance

Note: Before unallocated costsNote: Before elimination adjustments

Turnover and Growth

(RMB mm)

Growth

Operating Profit and Growth

(RMB mm)

16.9%

42.5%

304.6258.8

0

100.0

200.0

300.0

400.0

500.0

1H 2003 1H 2004 1H 2005

50.8

0

15.0

30.0

45.0

60.0

75.0

90.0

105.0

1H 2003 1H 2004 1H 2005

434.2

59.4

Growth

97.8

64.6%17.7%

14

Marine Transportation Operating PerformanceMarine Transportation Operating Performance

Note: Before unallocated costsNote: Before elimination adjustments

Turnover and Growth

(RMB mm)

Growth

Operating Profit and Growth

(RMB mm)

119.3%36%

1,380.91,175.5

0

500.0

1000.0

1500.0

200.0

2500.0

1H 2003 1H 2004 1H 2005

39.9

0

15.0

30.0

45.0

60.0

75.0

90.0

105.0

1H 2003 1H 2004 1H 2005

1,878.3

87.5

Growth

124.6

42.4%

17.5%

15

Income StatementIncome Statement

RMB mm 1H 2005(1) 1H 2004(2)

Turnover 13,074.0 9,754.4

Other revenues 46.9 29.3

Total revenues 13,120.9 9,783.7

Operating costs (excl. Depreciation and amortization)

(9,969.1) (7,356.4)

Depreciation and amortization (129.0) (107.7)

Operating profit 654.3 533.2

Net financial income 12.6 22.6

Share of results of associates 6.6 6.5

Profit before taxation 673.5 562.3

Profit for the period from continuing operations

Profit for the period from discountinued operations

497.4

104.3

408.6

41.7

Note: (1) 2005 interim profit and loss statement is un-audited. (2) 2004 interim profit and loss statement is re-stated.

Profit attributable to shareholders 498.7 376.3

Profit for the period 601.7 450.4

16

Balance Sheet StatementBalance Sheet StatementRMB mm 1H 20051 20042

Cash and cash equivalents 4,962.5 4,722.7

Term deposits with initial term of over three months 1,013.6 924.9

Trade and other receivables 5,005.4 4,073.6

Others 628.1 497.1

Total current assets 11,609.6 10,218.3

Property, plant and equipment 2,198.0 1,896.7

Other non-current assets 1,016.4 959.3

Total non-current assets

Non-current assets classified as held for sale

3,214.4

9.0

2,856.0

9.0

Total assets 14,833.0 13,083.3

Borrowings 136.9 194.5

Trade payables 3,896.1 3,074.6Other current liabilities 2,102.0 1,926.0

Total current liabilities 6,135.0 5,195.1

Borrowings 4.4 13.8

Deferred tax liabilities 6.7 1.5

Others 449.8 69.3

Total non-current liabilities 460.9 84.6

Owner’s equity 7,122.7 6,768.5

Minority interests 1,114.4 1,035.1

Total equity and liabilities 14,833.0 13,083.3Note: 1. 2005 interim balance sheet statement is un-audited 2. 2004 interim profit and loss statement is re-stated.

17

Cash Flow StatementCash Flow Statement

RMB mm 1H 20051 1H 20042

Net cash inflow from operating activities 367.3 243.0

Net cash (used in)/ provided from investing activities (488.1) 119.7

Net cash used in from financing activities (165.0) (34.8)

Net (decrease) / increase in cash and cash equivalents

(285.8) 327.9

Note: 1. 2005 interim cash flow statement is un-audited. 2. 2004 interim profit and loss statement is re-stated.

18

2.2. Outlook and Strategic FocusOutlook and Strategic Focus

19

Company Strategies

Optimize marketing and customer management to enhance management level and cost control4

Open up new revenue resources by developing new services and new products3

Improve the service network and to expand NVOCC business2

Strengthen business integration and enhance operational quality to improve business efficiency1

Enjoy ongoing business growth in the ever-changing logistics and transportation market to cope with external trade and seasonal change in the

industry in the second half of 2005

20

3.3. ConclusionConclusion

21

ConclusionConclusion

Strong Sector Growth in China

Valuable Strategic

Relationships

Market Leadership

Extensive Network

Experienced Management

Team

Full Service Capabilities

Strong Brand Recognition

Superior Financial

Performance

22

- Thank You -